The Dallas Fed talks oil patch

The latest Beige Book from the Federal Reserve Bank of Dallas is out, and it says there’s “some flattening of activity at high levels” in the energy industry.

Here’s more of what the Dallas Fed had to say:

On pricing:

“Energy prices were mixed, with natural gas prices holding steady and the price of West Texas Intermediate crude rising to an average of $104 per barrel over the past six weeks. Gasoline and diesel prices declined modestly.”

“Fabricated metals producers noted demand was up due to oil and gas activity and outlooks were positive.”

On transportation:

“Transportation service firms noted that cargo volumes were mixed, with increases in railroad and container volumes, but flat air cargo and declining small parcel volumes. Rail volumes were boosted by robust growth in petroleum shipments.”

And on the oil patch:

“Drilling activity was little changed at high levels. Global demand held steady. Respondents expect improvement in energy activity in the second half of the year, due in part to anticipated increases in rig activity and production from the Gulf of Mexico. The recent increase in oil prices has increased the cost advantage of domestic petrochemicals firms.”